US Gov Set to Hoard 1M+ Bitcoin? New Bill Changes the Game

Senator Cynthia Lummis has reintroduced BITCOIN Act, a bill that would allow the U.S. government to hold more than 1 million Bitcoin in a new reserve. Originally introduced in July, the bill details a plan for the government to spend Bitcoin or other obtainable hard foreign currencies by means of direct purchases or other actions not criminal or forbidden.

Proud to re-introduce the BITCOIN Act. Let’s secure America’s financial future.pic.twitter.com/jJFmMopP7h

— Senator Cynthia Lummis (@SenLummis) March 11, 2025

BITCOIN Act Proposes Massive Bitcoin Reserve

The BITCOIN Act of 2025 directs the U.S. government to buy 200,000 Bitcoin annually over five years, reaching a total of 1 million Bitcoin. The acquisition would be funded through the Federal Reserve system and the Treasury Department by reallocating existing funds.

Beyond direct purchases, the bill permits the government to obtain Bitcoin from other sources, including civil and criminal forfeitures, gifts, and transfers from federal agencies. Additionally, U.S. states may contribute their own Bitcoin holdings to the strategic reserve, which would be stored in a separate account.

Lummis Gains Support from Key Lawmakers

The bill has attracted support from Republican Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno. Senator Justice backed the initiative, saying, “It’s a privilege to collaborate with Senator Lummis on establishing a strategic Bitcoin reserve and solidifying President Trump’s executive order into law.”

Justice also pointed to the broader goals of the bill, stating, “This effort reinforces America’s position in financial innovation, strengthens economic security, and provides a new way to tackle our growing national debt.”

Changes in the New Version of the Bill

The updated BITCOIN Act introduces a formal evaluation process for Bitcoin forked assets and airdropped tokens held in the reserve. Previously, the bill required all forked assets to remain in the reserve for at least five years unless authorized for disposal.

The updated bill gives the Secretary the authority to review and keep the asset with the highest market value once the required holding period ends. It also ensures that the primary asset remains in the reserve. In the past, Bitcoin has split into different versions, leading to the creation of cryptos like Bitcoin Cash (BCH) and Bitcoin Gold (BTG).

Tied to Recent Executive Order on Bitcoin Reserve

The reintroduction of the BITCOIN Act follows an executive order signed by U.S. President Donald Trump to create a Strategic Bitcoin Reserve and a Digital Asset Stockpile. The reserve will initially consist of Bitcoin confiscated in government legal cases.

According to the executive order, the Bitcoin reserve will not be sold, and its growth will be managed through “budget-neutral” methods. However, assets from the Digital Asset Stockpile may be sold as part of broader financial strategies.